It took Vizsla Resources (VZLA-TSXv) CEO Michael Konnert all of six weeks to deliver the goods.

And the drill results weren’t “goods”—they were “greats”.

Back on May 13 I alerted my readers to what I thought would be the next Silvercrest (SIL-TSX; 13 cents – $13 in 5 years)—Vizsla Resources put out the first ever drill results on their Napoleon vein in northwest Mexico–1,544 grams per tonne silver equivalent (738.9 grams per tonne silver and 11.06 g/t gold) over 8.2 metres—including 3348 g/t AgEq over 2.0 m.

Folks, this is EXACTLY how Silvercrest got started at their Las Chispas deposit in Mexico. I went through their very first drill results—issued in August 2016—and those headlines read “intercepts of greater than 2000 gpt AgEq”. In November 2016 their drill results headlined “Results of Greater than 1,400 gpt AgEq”.

There is one difference—Vizsla has freakishly high grade gold to go along with fabulous silver numbers. The Market responded in a hurry to Vizsla’s news—the stock traded 8,788,100 shares and jumped 30 cents—or 68%–to 74 cents.

I spoke to Vizsla VP Exploration Charles Funk on Wednesday after the news came out, and he gave me reason to be even more excited:

“We’ve hit the vein in every hole that we’ve drilled, including the current hole that we’re drilling 60 meters north of the northern most hole.

“And the other thing that’s really nice about this vein, these are the first holes in the entire corridor. And so there are workings with silver equivalent numbers in kilos, and workings to the North, and we’ve never tested those.

“So that’s the potential of the corridor. Even though there’s a mine in the district, veins like this have never been drilled.”

We’re going to talk geology for a second here, because Charles is very good at putting it in layman’s terms, and outlining why the geology should give investors strong upside potential:

“…the really nice thing about the geology is, is the complexity of the veins.

You know, normally when people talk about quartz veins, you see a big white quartz mining, and you can see in these photos that they’re full of grain green and that’s all due to mineralization sulfide.

“So we’re seeing a complex system with lots of pulses of mineralization, which probably explain why we see gold, silver and the base metals. These complicated, long live systems can create bigger orchards. So that’s a really good sign and the system’s open in every direction so far, we haven’t found the boundary of this orchard yet.”  (My emphasis)

“So within the plane of the vein, it’s open to the South, it’s open at depth and it’s open to a North of the current holes. So we don’t yet know the full extent of the current orchard.”

What’s really intriguing as well is—most of the Napoleon vein is on the ONE side of the Panuco property that has the 500 ton per day (tpd) mill—that was operating right up until last year. 

If you remember my story on Vizsla, I liked it so much after Konnert sat me down and explained how he optioned the property from two adjacent landowners who couldn’t work together. 

Each landowner is a separate option—and this very rich, high grade silver is on the side with the mill. That means Konnert could exercise his option on the one side, and let cash flow from producing Napoleon (down the road of course) pay for the second option on the neighboring property.

Konnert always said the infrastructure on the properties are worth the entire option price if not more—he was getting the geology for free. He has high tension power on the property, a 500 tpd mill, a tailings facility, 30 kms of underground workings.

The point is—huge grades like this on a new discovery give Konnert and Vizsla LOTS of options.

The size of the payment—CAD$43 million—was one of the reasons the stock—until today—had trouble getting momentum. Funk summed it up well:

“The hardest pushback we’ve had before this news release is that paying $23 million or $43 million is a lot of money. So it’s an expensive deal.

“And the answer is–if people think of it as an exploration project, that is a valid point. But I think by the holes that were drilled now that we can show that actually this is probably just a brownfield site that’s never been explored.

“And if we show a high-grade resource for them, that actually becomes a very cheap pathway to production. So the deal is unusual in that it is very expensive when finding resources. And when you find resources it instantly becomes very cheap.”

I AM STILL LONG VIZSLA RESOURCES